TaxTMI 
TaxTMI 
2022 (9) TMI 620
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.... 3. In addition to reiterating the various contentions urged in the petition and referring to the documents produced by the petitioner, learned Senior counsel for the petitioner submits that on 18.10.2019, re-assessment proceedings in relation to the petitioner for the assessment years 2015-16 and 2016-17 were taken up by the respondents under Section 39 of the Karnataka Value Added Tax Act, 2003 (for short "the KVAT Act"). On 24.09.2020 and 27.04.2021, a proposition notice was issued by the 3rd respondent and 2nd respondent to the petitioner proposing to levy penalty in a sum of Rs.57,91,55,607/- and Rs.54,63,94,578/- respectively under Section 70(2) (a) R/w Section 39 of the KVAT Act for the assessment year 2015-16 and 2016-17. The petitioner having submitted their objections to the said proposition notice, respondent No.2 and 3 proceeded to pass a reassessment order dated 24.09.2020 and 27.04.2021 under Section 70(2) R/w Section 39 of the KVAT Act and issued a demand notice to the petitioner pursuant to the same. Meanwhile, the aforesaid scheme having come into force with effect from 29.03.2021, petitioner submitted an application dated 28.12.2021 in Annexure- IA seek....
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....rn is paid in full. b. penalty levied under Section 74(4) for failure to submit copy of the audited statement of accounts in FORM VAT 240 under the KVAT Act and consequential interest subject to the condition that admitted tax liability, if any, as per FORM VAT 240 is paid in full. c. penalty levied by the Audit Officer under Section 72(3-B) for failure to submit copy of the audited statement of accounts. 4. It grants waiver of 100% of arrears of penalty and interest payable by a dealer or person or proprietor as the case may be relating to the assessment or reassessment already concluded and to be concluded upto 31.07.2021 under the following Acts also, namely.- a. Karnataka Tax on Entry of Goods Act, 1979, (hereinafter referred to as KTEG Act); b. Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, (hereinafter referred to as KTPTC & E Act); c. Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KTL Act); d. Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act); and e. Karnataka Entertainments Tax Act, 1958, (hereinafter referred to as KET Act). &n....
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....4) c) Penalty under Section 72(3-B) (8.4) Clause No.4 deals with waiver of 100% of arrears of penalty and interest under various enactments provided therein viz., Karnataka Tax on Entry of Goods, 1979 etc., relating to assessments/re-assessments of the orders already completed prior to 29.03.2021 (when the scheme came into force) and to be completed on or before 31.07.2021. (8.5) Clause No.5 stipulates that the grant of waiver of penalty and interest would be subject to certain conditions; for the present purpose, Clause No.5.1 and 5.2 would be relevant; while Clause No.5.1 permits grant of waiver of 100% of arrears of penalty and interest only in favour of a person, who makes full payment of arrears of tax on or before 31.10.2021, it is clarified in the said clause that any penalty levied under Section 10-A of the CST Act shall not be eligible for the benefit of waiver under the scheme. So also, Clause 5.2 provides that if a person does not have any arrears of tax but only arrears of penalty and interest relating to assessments/re-assessments already completed as on 29.03.2021 (when the scheme came into force) and to be completed on or before 31.07.2021, such arrear....
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.... a person/dealer/proprietor should have paid the entire/full arrears of tax on or before 31.10.2021; by way of an exception, it is made clear that penalty levied under Section 10-A of the CST Act would not be entitled to the benefit of waiver under the Scheme. e) Clause 5.2 reiterates that the twin/two fold requirement to claim grant of waiver of penalty and interest would be that firstly, the dealer should not have any arrears of tax but only arrears of penalty and interest and that all assessments or reassessments should stand completed on or before 31.07.2021. 10. In the instant case, it is an undisputed fact that no penalty is sought to be levied against the petitioner under Section 72 (1)(a), 72(1)(b), 74(4) or 72(3-B) of the KVAT Act and consequently, clause No.3 would have no application to the facts of the instant case in so far as the petitioner is concerned. On the other hand, as rightly contended by the learned Senior counsel for the petitioner, it is Clause No.2 of the Scheme that would be applicable to the facts of the instant case and in the light of the undisputed fact that the reassessment was completed on 24.09.2020 smf 28.04.2021 as can be seen from th....